Question

Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Thomas Corporation’s April...

Material, Labor, and Variable Overhead Variances
The following summarized manufacturing data relate to Thomas Corporation’s April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours.

Standard Units Costs Total Actual Costs
Direct material
Standard (2 lb. @ $9.00/lb.) $18
Actual (4,200 lb. @ $10.20/lb.) $42,840
Direct labor
Standard (0.5 hr. @ $24/hr.) $12
Actual (950 hrs. @ $23.40/hr.) 22,230
Variable overhead
Standard (0.5 hr. @ $6/hr.) $3
Actual - 6,450
Total $33 $71,520

Determine the following variances:

Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable.

Materials Variances
Actual cost: Answer
Split cost: Answer
Standard cost: Answer
Materials price Answer AnswerFU
Materials efficiency Answer AnswerFU
Labor Variances
Actual cost: Answer
Split cost: Answer
Standard cost: Answer
Labor rate Answer AnswerFU
Labor efficiency Answer AnswerFU
Variable Overhead Variances
Actual cost: Answer
Split cost: Answer
Standard cost: Answer
Variable overhead spending Answer AnswerFU
Variable overhead efficiency Answer AnswerFU
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Material Variance

Actual Cost $ 10.20
Split Cost
Standard Cost $ 9
Material Price( $ 9 - $ 10.20 = $1.20 × 4,200) $5040 U
Materials Efficency ( Actual usage - Standard usage )(4200 - 4000) $ 200 U

Labour Variance

Actual Cost $ 23.40
Split Cost
Standard Cost $24
Labour Rate ( 24 - 23.40 = .60 * 950 = $ 570) $570 F
Labour Efficiency ( .50*2000 = $1000 - 950 = 50 * 24 = $ 1200) $1,200 F

Labour rate is favourable due to 60 cent savings

Variable Overhead Variance

Actual Cost Not Given
Split Cost
Standard Cost $ 6
Variable Overhead Spending ($950 * 6 = $ 5,700 , $6450 - 5700 = $ 750 $ 750 F
Variable Overhead Efficiency ( $1000 - 950) * 6 = $ 300 F $ 300 F
Add a comment
Know the answer?
Add Answer to:
Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Thomas Corporation’s April...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Kiosse Corporation’s May...

    Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Kiosse Corporation’s May operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs Direct material Standard (3 lb. @ $2.00/lb.) $6 Actual (6,200 lb. @ $2.20/lb.) $13,640 Direct labor Standard (0.5 hr. @ $14/hr.) $7 Actual (980 hrs. @ $13.70/hr.) 13,426 Variable overhead Standard (0.5 hr. @ $4/hr.) $2 Actual - 4,200 Total...

  • Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Steffan Corporation's April...

    Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Steffan Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs Direct material Standard (2 lb. @ $9.50/lb.) $19 Actual (4,200 lb. @ $10.20/lb.) $42,840 Direct labor Standard (0.5 hr. @ $24/hr.) $12 Actual (970 hrs. @ $23.40/hr.) 22,698 Variable overhead Standard (0.5 hr. @ $6/hr.) $3 6,200 Actual $34 $71,738...

  • Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Steffan Corporation's April...

    Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Steffan Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs Direct material Standard (2 lb. @ $9.50/lb.) $19 Actual (4,200 lb. @ $10.20/lb.) $42,840 Direct labor Standard (0.5 hr. @ $24/hr.) $12 Actual (970 hrs. @ $23.40/hr.) 22,698 Variable overhead Standard (0.5 hr. @ $6/hr.) Actual 6,200 Total $71,738 Assume...

  • Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Thomas Corporation's April...

    Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Thomas Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs $38 $83,160 $17 Direct material Standard (2 lb. @ $19.00/lb.) Actual (4,200 lb. @ $19.80/lb.) Direct labor Standard (0.5 hr. @ $34/hr.) Actual (950 hrs. @ $33.00/hr.) Variable overhead Standard (0.5 hr. @ $16/hr.) Actual Total 31,350 $8 16,450 $130,960...

  • Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Thomas Corporation's April...

    Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Thomas Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs $34 $74,760 Direct material Standard (2 lb. @ $17.00/lb.) Actual (4,200 lb. @ $17.80/lb.) Direct labor Standard (0.5 hr. @ $32/hr.) Actual (950 hrs. @ $31/hr.) Variable overhead Standard (0.5 hr. @ $14/hr.) $16 29,450 $7 Actual 14,450 $118,660 Total...

  • Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Thomas Corporation's April...

    Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Thomas Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs Direct material Standard (2 lb. @ $18.00/lb.) $36 Actual (4,200 lb. @ $19/lb.) $79,800 Direct labor Standard (0.5 hr. @ $33/hr.) $16.50 Actual (950 hrs. @ $32.20/hr.) 30,590 Variable overhead Standard (0.5 hr. @ $15/hr.) $7.50 Actual - 15,450 Total...

  • Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Thomas Corporation's April...

    Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Thomas Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs Direct material Standard (2 lb. @ $18.00/lb.) $36 Actual (4,200 lb. @ $19/lb.) $79,800 Direct labor Standard (0.5 hr. @ $33/hr.) $16.50 Actual (950 hrs. @ $32.20/hr.) 30,590 Variable overhead Standard (0.5 hr. @ $15/hr.) $7.50 Actual 15,450 Total $60...

  • Question text Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Thomas...

    Question text Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Thomas Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs Direct material Standard (2 lb. @ $17.00/lb.) $34 Actual (4,200 lb. @ $17.80/lb.) $74,760 Direct labor Standard (0.5 hr. @ $32/hr.) $16 Actual (950 hrs. @ $31/hr.) 29,450 Variable overhead Standard (0.5 hr. @ $14/hr.) $7 Actual -...

  • The following summarized manufacturing data relate to Thomas Corporation's April operations, during which 2,000 finished units...

    The following summarized manufacturing data relate to Thomas Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs Direct material Standard (2 lb. @ $11.00/lb.) $22 Actual (4,200 lb. @ $12.00/lb.) $50,400 Direct labor Standard (0.5 hr. @ $26/hr.) $13 Actual (950 hrs. @ $25.20/hr.) 23,940 Variable overhead Standard (0.5 hr. @ $8/hr.) $4 Actual - 8,450 Total $39 $82,790 Determine the following variances:...

  • Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Kiosse Corporation's May...

    Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Kiosse Corporation's May operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs $13,640 Direct material Standard (3 lb. @ $2.00/lb.) Actual (6,200 lb. @ $2.20/lb.) Direct labor Standard (0.5 hr. @ $14/hr.) Actual (980 hrs. @ $13.70/hr.) Variable overhead Standard (0.5 hr. @ $4/hr.) Actual Total 13,426 $15 4,200 $31,266 Assume that...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT